Revenues

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenues

13. Revenues

Revenues from contracts with customers (excluding lease-related revenues) are recognized when control of the promised goods or services is transferred to the Company’s customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Revenue and cost of sales for condominium units sold are not recognized until the construction is complete, the sale closes, and the title to the property has transferred to the buyer (point in time). Additionally, certain real estate selling costs, such as the costs related to the Company’s condominium model units, are either expensed immediately or capitalized as property and equipment and depreciated over their estimated useful life.

The following presents the Company’s revenues disaggregated by revenue source:

	Three Months Ended September 30,				Nine Months Ended September 30,
thousands	2024		2023		2024		2023
Revenues from contracts with customers
Recognized at a point in time:
Condominium rights and unit sales	$	3	$	25,962	$	26	$	46,915
Master Planned Communities land sales	198,239		75,378		385,444		177,045
Builder price participation	9,592		15,847		35,063		45,763
Total	207,834		117,187		420,533		269,723
Recognized at a point in time or over time:
Other land, rental, and property revenues	10,700		11,308		31,105		35,902
Rental and lease-related revenues
Rental revenue	108,613		99,978		315,461		290,164
Total revenues	$	327,147	$	228,473	$	767,099	$	595,789
Revenues by segment
Operating Assets revenues	$	114,019	$	106,178	$	331,779	$	310,942
Master Planned Communities revenues	212,607		95,799		433,663		236,123
Strategic Developments revenues	505		26,481		1,607		48,679
Corporate revenues	16		15		50		45
Total revenues	$	327,147	$	228,473	$	767,099	$	595,789

Contract Assets and Liabilities Contract assets are the Company’s right to consideration in exchange for goods or services that have been transferred to a customer, excluding any amounts presented as a receivable. Contract liabilities are the Company’s obligation to transfer goods or services to a customer for which the Company has received consideration.

There were no contract assets for the periods presented. The contract liabilities primarily relate to escrowed condominium deposits, MPC land sales deposits, and deferred MPC land sales related to unsatisfied land improvements. The beginning and ending balances of contract liabilities and significant activity during the periods presented are as follows:

thousands
Balance at December 31, 2023	$	575,621
Consideration earned during the period	(79,388)
Consideration received during the period	328,893
Balance at September 30, 2024	$	825,126
Balance at December 31, 2022	$	453,091
Consideration earned during the period	(78,062)
Consideration received during the period	165,419
Balance at September 30, 2023	$	540,448

Remaining Unsatisfied Performance Obligations The Company’s remaining unsatisfied performance obligations represent a measure of the total dollar value of work to be performed on contracts executed and in progress. These performance obligations primarily relate to the completion of condominium construction and transfer of control to a buyer, as well as the completion of contracted MPC land sales and related land improvements. These obligations are associated with contracts that generally are non-cancelable by the customer after 30 days for all Ward Village condominiums and after 6 days for The Ritz-Carlton Residences; however, purchasers of condominium units have the right to cancel the contract should the Company elect not to construct the condominium unit within a certain period of time or materially change the design of the condominium unit. The aggregate amount of the transaction price allocated to the Company’s remaining unsatisfied performance obligations as of September 30, 2024, was $3.7 billion. The Company expects to recognize this amount as revenue over the following periods:

thousands	Less than 1 year			1-2 years		3 years and thereafter
Total remaining unsatisfied performance obligations		$	887,871	$	1,239,222		$	1,589,228

The Company’s remaining performance obligations are adjusted to reflect any known project cancellations, revisions to project scope and cost, and deferrals, as appropriate. These amounts exclude estimated amounts of variable consideration which are constrained, such as builder price participation.